The Hindu Business Line : SBI asked to submit rehab scheme for Dunlop India by Dec 14

THE reconstituted Bench of the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) is said to have asked State Bank of India — an operating agency responsible for preparing a detailed rehabilitation scheme (DRS) for the ailing Dunlop India Ltd (DIL) — to submit its report before the next hearing on the company on December 14 facilitating all stakeholders to express their views.

The DIL management, on its own, is preparing a revised rehabilitation scheme to be submitted next week to the operating agency.

Its views will be based on the recommendations of the National Productivity Council (NPC), an undertaking under the Union Ministry of Commerce. It may be noted that NPC was engaged by the management in September for preparing a suitable business plan to re-start the company's suspended operation and to turn it around.

NPC has submitted its report, and the DIL board has decided to meet early next week to review the council's report.

The report, it is learnt, has said that the company is still an economically viable business enterprise and its negative worth could be neutralised within the next six years provided a fresh investment about Rs 150 crore is made to modernise the plant and equipment of two factories.

While the promoters of the company are keen on selling their equity stake as part of a measure to re-start the suspended operations, trade unions operating at the company's two factories at Sahaganj in West Bengal and at Ambattur in sub-urban Chennai and its head office in the city have plans to oppose any rehabilitation schemes till arrears of salary/wages are cleared.

A DIL source said some business groups have expressed an interest to acquire a controlling equity stake in the asset-rich tyre company. Among those showing interests include the London-based Caparo Group of Lord Swaraj Paul, the Kolkata-based Pawan Ruia Group, Metro Tyres Ltd from the southern region and the Ghanashyam Sharda Group from the northern region.

He said that some of them had informed the AAIFR of their intention in writing.

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